Job Order Contracting (JOC)

Frequently Asked Questions

Three FOS employees reviewing a job order contracting platform dashboard

What is Job Order Contracting (JOC)?

Job order contracting (JOC) is an indefinite-delivery, indefinite-quantity (IDIQ) construction procurement method. JOC facilitates competitively awarded, task-order based contracts that help:

  • Reduce or eliminate traditional procurement processes, saving time and money.

  • Organize procurement and contract management for construction programs.

  • Create a transparent and competitive environment for construction procurement.

  • Encourage and support business diversity and inclusivity programs.

Using JOC, task orders for construction projects are governed using a unit price book (UPB). The UPB is a catalog of construction tasks that is used to develop line-item proposals based on scopes of work. Each line item in the UPB contains the costs of equipment, materials, and labor to complete a measurable unit of construction work. UPBs are developed to the specific needs, specifications, and standards of each owner, and reflect actual regional conditions and wage rates. All line items in the UPB are subject to contractor adjustment factors that are submitted when competing for the master contract.

How does JOC create value over traditional construction procurement?

JOC creates significant time savings for competitive construction procurement. The competitive bidding and contracting process is completed up-front when awarding master contracts. All work is ordered through an extensive catalog of construction unit prices, known as a unit price book, that is common to all contractors participating in the JOC program. Since each task order is accomplished by assigning a scope of work to a contractor who then prepares a proposal of line items from the UPB, the time between identifying a project and issuing a notice to proceed is compressed from traditional procurement’s timeframe of weeks to months to as little as hours or days in JOC.

Owners who use JOC programs realize transparency in contractor pricing. The submitted adjustment factors represent each contractor’s cost of doing business including general conditions, overhead, and profit. Each line item from the UPB represents the local or regional costs of construction tasks that may be performed. Therefore, each task order clearly communicates the costs of performing each project procured through the JOC program.

Can a JOC program be developed to meet specific needs?

JOC programs should be specific to both local procurement codes and owner needs. The Simplebid® JOC platform developed by FOS is an adaptable and comprehensive JOC procurement and project management program. It is configurable to individual client needs and procedures, featuring customizable forms, dashboards, and reports. It is designed to be easily integrated with other information management platforms. FOS works with each client to develop tailored JOC programs that create the most value and measurable results.

What types of projects are well-suited for JOC?

Repetitive maintenance, renovation, and emergency type construction projects, especially those that must be completed quickly, are well suited for JOC programs. JOC is rarely used for new construction projects. Local, state, or organizational procurement codes often define which types of projects are authorized. In addition, these codes generally define the maximum contract and individual project dollar amount limits apply.

What organizations can use JOC?

Public entities such as the federal government, higher education institutions, local government agencies, housing authorities, public works and transportation departments, K12 school districts, public healthcare providers, and any other public entities that are permitted to use JOC based on applicable procurement codes are the most frequent users of JOC.

While public entities are the traditional users of JOC procurement, there is significant opportunity in the private sector to apply a similar approach. Because private organizations are not subject to procurement code, there are components of the JOC process that may be modified to better suit different needs. The Simplebid® platform developed by FOS can easily support JOC and other rapid construction procurement methods for private entities.

Are there industry metrics on the benefits of JOC?

A study conducted by Arizona State University that surveyed organizations using JOC found the following:

  • 97% satisfaction on projects ordered through JOC.

  • 87% of JOC projects delivered on time.

  • 91% of JOC projects delivered on budget.

Owners who participated in the study reported 24% cost savings, 75% decreased procurement time, 30% better transparency, and 5% or greater schedule performance when compared to traditional procurement methods. The 2016 study by Arizona State University was published by the Performance Based Studies Research Group (PBSRG) and is also available through the Center for JOC Excellence (CJE).

How does the Simplebid® JOC platform enhance maintenance, renovation, and capital program contracting operations?

Owners often face challenges managing contractors hired to perform on-call maintenance, repair, and minor capital improvement projects (generally those that do not exceed $5 million or so in construction value). These challenges may include:

  • No centralized platform to manage contractors and contracts.

  • No consistent process to ensure competitive bidding.

  • Lack of transparency on fees paid to contractors for work performed.

  • Lack of formalized business inclusion goals, tracking, and accountability.

The Simplebid® JOC platform creates a centralized management framework for organized, competitive procurement.

Our team collaborates with each client to fit the Simplebid® platform around your specific goals. There is no one-size-fits-all solution; therefore, our program development methodology starts with flexibility. Get in touch with our team to learn more!